- By Divanshi Sharma
- Sat, 13 Jan 2024 12:30 PM (IST)
- Source:JND
The renowned American electric vehicle manufacturer Tesla is said to be in serious discussions about entering the Indian automotive market. It is also rumoured that the EV manufacturer is considering an investment of around $30 billion in the next five years. Reportedly, the company is considering a substantial investment to set up manufacturing plants, battery ecosystems, and related industries.
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The Indian Road Transport and Highways ministry has introduced a campaign called EV30@2030. The goal is to make sure that by the year 2030, 30 per cent of new private cars, 40 per cent of buses, 70 per cent of commercial cars, and 80 per cent of 2-wheelers and 3-wheelers are electric. Even though there isn't one specific policy for electric vehicles (EVs) in India, the government has taken different actions and measures to show that they're really serious about encouraging people to use EVs in the country.
Therefore, it is being speculated that Tesla might invest in a factory in India to produce a small car in two years, with the manufacturing plant ready in three years. The car's price isn't decided yet, but it's expected to be more affordable than regular Teslas. Additionally, this new car will be targeting markets in Asia, Africa and Latin America. The factory, with a lot of locally made parts, is expected to not just cater to the Indian market but also focus on exports. If this goes well, it could be the biggest foreign investment in India, with Tesla putting in $3 billion and partners adding $10 billion in the manufacturing ecosystem. Additionally, there's a plan for a $5 billion investment in batteries, eventually reaching $15 billion, making the total investment around $30 billion.
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Tesla is thinking about four main locations to set up its plant in India - Haryana (to serve the large NCR market), Tamil Nadu, Maharashtra, and Gujarat. However, since Tesla wants to focus on exporting, it's likely that if they decide to invest, they might choose a state along the west or south coast.